GBP/AUD Daily Price Forecast – 6th March 2025

GBP/AUD Daily Price Forecast – 6th March 2025

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Trade Summary:

GBPAUD
Buy Stop @ 2,03603
TP @ 2.04809
SL @ 2.02166

GBPAUD Analysis (H4 Timeframe)

Overview

The chart provided shows a technical setup for GBPAUD on the H4 timeframe. The analysis is based on a combination of price action, momentum indicators, and moving averages. Key levels for entry, stop loss, and take profit are clearly marked, providing a structured trading plan.

Key Levels

• Buy Stop: 2.03603

  • This is the entry level for a potential long trade. The price is expected to break above this level, confirming bullish momentum.

• Stop Loss (SL): 2.02166

  • This is the risk management level. If the price falls to this level, the trade will be exited to limit losses.

• Take Profit (TP): 2.04809

  • This is the target level for the trade. If the price reaches this level, the trade will be closed in profit.

Technical Indicators

• Moving Averages:

  • The blue line represents the longer-term moving average, indicating a strong upward trend.

  • The green line represents the shorter-term moving average, which is currently acting as dynamic support.

• Momentum Power: 0.00024725

  • The momentum indicator suggests that the market is in a consolidation phase, waiting for a breakout. Momentum is not yet strong, but it aligns with the potential for a bullish move.

• Candlestick Confirmation:

  • The chart mentions waiting for candlestick confirmation before entering the trade. This ensures that the breakout above 2.03603 is valid and not a false move.

Price Action

• The price has been in a strong uptrend, as evidenced by the series of higher highs and higher lows.

• A pullback is currently occurring, with the price testing the shorter-term moving average (green line). This pullback could provide a buying opportunity if the price breaks above the Buy Stop level.

Trade Plan

• Entry:

  • Place a Buy Stop order at 2.03603. This ensures that the trade is only triggered if the price breaks above this level, confirming bullish momentum.

• Stop Loss:

  • Set the Stop Loss at 2.02166. This level is below the recent swing low, providing a buffer against market noise.

• Take Profit:

  • Set the Take Profit at 2.04809. This level is near the recent highs, offering a favorable risk-to-reward ratio.

Risk Management

• The distance between the entry (2.03603) and the stop loss (2.02166) is approximately 144 pips.

• The distance between the entry (2.03603) and the take profit (2.04809) is approximately 120 pips.

• The risk-to-reward ratio is slightly less than 1:1, which may require adjustment based on individual trading strategies.

Conclusion

The GBPAUD pair is in a bullish trend, with a potential breakout setup forming. The trade plan is structured around a Buy Stop order at 2.03603, with a Stop Loss at 2.02166 and a Take Profit at 2.04809. Traders should wait for candlestick confirmation and monitor momentum before entering the trade. Proper risk management is essential to ensure a disciplined approach.

Recommended Lot Size

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It’s widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it’s easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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